The Sun. — London, England, 1826-02-21 00:00:00

won to aired the ?fleet. of all eetaModititill, and securities and it would be limited to the pressure under which they la whatever, and would thus, in point of fact, have an influence boured. Then again came the argument that Government had over the value of every man's property in the king do m s The done all this because it felt itself in a difficulty, and it did not Bank had been inconsistent in its issues, for after the battle of know how to get out of it. Ho would not deny it; they were Iwipsic, it had made large issues to the encouragement of ape- in a difficulty which It was almost impossible they should not find themselves in, considering the state of the currency, culation, and when the returns of exported goods had brought *nth difficulties upon the country, they still went on with their and that not an ordinary difficulty ; but were they to be re- Issues. The spirit of speculation had its rise in the year 1824, Preached because they endeavoured to remedy the evil out of when the Bank of England had put forth its largest issues. which it arose ?—or were they to be denounced as ignorant heed which proved that the origin of the speculations was to be less, and improvident servants of the public under such a pe. -traced. to the Bank more than to the couture hankers. lie culler train of occurrences, because they had not by anticipation gave the plan of the Chance Per of the Excheetter his decided' taken manures to prevent such an event. Surely it was their .. oppoeition. , - . , duty, as public men and his Majesty's Ministers to comedown to 31r. secretary CANNING rose, not for the purpose oren. that House, end sit moping in a mysterious silence, wishing for *ring into any discussion but to remind Hon. Gentlemen op- others to enter u p on the subject of the currency, when all who posite of the state into which the business of the night was knew any thing of which men were, or that House was matte brought by the course which had been taken. , They must see of e would only censure them for adopting such a line of conduct. that 'pis Right Honourable Friend (the ci ienee n oe o f Nu—fnr otherwise had been their conduct, from a conviction the xXche q uer) was now placed in a position in which 'that it was their duty to endeavour to .attempt to shape the re. it we impossible he could, agreeably with the forms of the nicely or mode of relict for the prutent distress. Ile altogether, and tofu cab differed with the Hon. Member for Aberdeen , that Hoette, give any answer whatever to the appeals and obeerva. bone 'that had now been making to hitn for the last three 1 a , currency of bank notes not convertible into coin , on de . hours. His Honourable Frier.,! (Mr. Itlaberly) had given no- mend, was no evil. Believing that most men in that house tick of his intention to oppose t thought that' the currency was a subject of vast importance ime Committee, and which he had a full right to tie, but he had withdrawn his motion in order that to the well-being of society, and had hence sacrificed their his Riglit Honourable Friend 'tniglit not be impeded ; but the warmth of feeling and party.apirit to meet the subject as be- Honourable Gentleman opiessite (Mr. Hume) lied. thought moue men iinpressed with its importance; he could never it more convenient, or rather, as it would seem, its a p ersona l think that tiny objection was token up to part of the details of compliment to the Speaker--(a laugh).--chat the, question a measure like this, merely to have a fling at Governmentew. should be discussed before Mr. Speaker left the Chair. But if (Hear not would not believe it possible that one and all -the Hon. Gentle iman would allow Mr. Speaker to leave the were not solicitous to do good, and to do it permanently, if Chair—Oatighter)—no doubt a very full account of the whole Possible, in an affair of such magnitude. Thinking as lie ho. ngs would come before him. lie (Mr. Canning) knew nestly did, it would be of great present advantage to grant an that Gentlemen had an opinion that they might. pursue this extension to the date of the issues of' Bank of England notes to course; but surely the forms of Parliament were instituted for the (ley he should name in his Amendment, namely; the 10th general convellience ; and it would be contrary to those forme of October next; lie intended to add a notice of an amendment if his illght Bon. Friend (the Cliencellor of the Exchequer) that there should be given for the Sake of publicity, as in the were to rise to answer the observation' that had been directed to Case of the Act of the year 1111 9 , specification by the Bank of hint, and yet it was impossible that those observations should England, in the Gazelle, of the amount of email notes, which be allowed to pass unnoticed. His Right Hon. Friend hail the Batik had issued, which should with all convenient speed :pledged himself to propose the amendment in the Committee; he laid before Parliament.—(llear, hear ! )—With this addl. the lion. Member would then have a full opportunity of taking tionatproof of his sincere wish to let the world and the House -time prqposition into consideration in that stage, and he ear- be acquainted with the extent and time issues of the litiek, he neatly hoped that his Right lion. Friend would not let any felt satisfied he should, as well as the rest of his Majesty's 51i . timing that had fallen from lion. Members opposite induce him nisters, and the Bank itself, be relieved from the imputation to Anticipate his proposition at a period to inconvenient as the that any of them could be parties to a dirty, paltry, contempt. present. There was nothing which should prevent Gentlemen ible scheme to defeat that measure which one and all felt so from storing into the principle as well as the details of the advantageous and essential to the public interest.--(Loud measure in time Committee, - and he therefore hoped that the cheering.) House woold now permit the details to be proceeded with. Mr. A BERCROMBY rose, in direct opposition to the Hon. The amendment was then negatived, and the original propo- Member who spoke last. He never heard a speech which failed sition put and carried without a division. so much in effecting what it professed. Ile should vote forthat PROMISSORY NOTES BILL. Bill, under the conviction that we had taken steps to impede On the motion of the CHANCELIMIt of the EXCITE. the progress of this particular measure. The great difficulty in . QUER, the House then resolved into a Committee of the this case was our inability to do it justice, without doing great whole, upon the Promissory Notes Bill. injury to the progress of truth. This new measure was calm- The Cll ANCELLOR of time EXCHEQUER observed that latest to defeat the object of the original measure, for which the the amendment which he intended to propose would come in at lion. Member, and his friends, had voted on a former occasion. the 2d page, 19th line; the insertion of time words, "at any Ills first great objection to the measure was, that it contained time before the 10th of October 1 8 2 11 ," in the blank , would something very different from any thing the lion. Alember had effect the object he had in view. There were one or two verbal stated ; and he could not find one single comment fur which he amendments which he should propose before they came to that had looked last Monday. Where a principle was brought Ihr part of the Bill to which he had alleded ; rind he totik leave to ward, it should be matntained—there should be no wavering. suggest that time Committee should proceed regularly with the The House should see that thie measure would not. produce clauses of the Bill, until they came to time particular point to those evil consequences, against which we should be most which he lied referred, and which he should then proceed to anxious to guard. In what light would this be considered by discuss. the countr y ? When it is taken in connection with the Speech, The first clause having been read by the Chairthan, a short it has furnished one reason fur its rejection—but however beau discussion arose upon it. tiful these principles may appear in theory, they shrink when Lord FOLKST(JNE thought that the clause; as at present applied in practice. The lion. Member (11r. Robinson) had worded, would have the e ff ect of producing a manifest mitts- put this quehtion in its true sens e, by saying, Oust lie should be tire. The present measure repealed die Act of die :17th & the against the measure, it' he found it at variance with the original late King, the consequence of which was that the Act of the measure, or calculated to defeat the object which it had in view. 17th of the late King was also repealed. Now, in his view, Now time best view to be taken of this question was, that it was a when the subsequent elatises of the present Rill, prohibiting question of time. It was on this supposition the Hon. Mem aireelation, came into operation, any unfortunate persons hay. ber (Mr. A.) and his friends had voted. Now it appeared that ino notes in their possession could not recover it payment of the Honourable Member (Mr. Robinson) had forgotten till those notes wits not demanded within a certain time. the arguments of the Honourable Secretary for the Home De llo:, CBANCLLIJOB of the EXCHEQUER thought the partment ; he assured the House that time was necessary in Nettle Lord misunderstood the effect of the clause. The words this deliberation. The Right Honourable Preetident of the prohibiting the circulation of certain nntee would not prevent Board of Trade cliti give us time. find he forgot time motion persons possessing., those notes from obtaining payment for made by an Hon. Friend near him (Mr. A.), who said, give them. . its time to set our houses in order. Timis modest request we. 'rho ATTORNEV-GF,NERAL Asaurcd the Noble Lord taken no noticeof now. It had been said, by an lion. Member, the clause referred to alluded only to the batting of notesof a par. that to give a year wits to defeat the object for ever. And now ticuler description Wand not to their circulation. The proltihf. we are milted for 8 months, and what is to be the consequence ? tion was against issuing and not circulating, and could not What was the argument of the lion. President of the Board of produce time effect which the Noble Lord anticipated. 'Trade ? lie contended that it was impossible to maintain a pa. Lord FOLK,S'rONE knew that the injustice which he had per circulation hi conjunction with a gold currency. New, the described was not the object of his Majesty's Ministers ; but he lion. Alember proposes to give the Bank of England the power had stated that he believed such would be the effect. ' of manufacturing notes 'for eight months. But it is to be reniern- The ATTORNLY-GENERAW, explained, sad the claim hewed, diet in time wont: proportion au you put out , notes, in the was agreed to. sane proportion you drive out sovereigns, and where will Upon the clause that the Rank should. cease to issue bank. you be after all Ode? You Will. have . more paper and toe notes for 11. and 21. after the 15th Feb. 1820, . gold—and is not this to, defeat the success of the original Mr. CALCRAFT rose to state, that should the amendment measure ? What was . the argument of Mr. Huskistion ? which the Chancellor of the Exchequer intended to propel() be Will yen destroy your enemy while he is weak, or will you carried, he (Mr. Calmat) should propose an amendment to the allow lam to gain strength ? Now, while we arc him:telt* effect that time country bankers should have it concurrent power the strength of the paper currency, is not this at variance with the Bank of England, and should not cease to issue until with the principle of time original Measure ? Now, since it was the lOth of October. Ile should reserve his proposition, how. too much at variance with the original measure, how. were ever, until the report Ms brought up. e hose to feel:who were called on to vote for one tiling it one The CHANCELLOR of the EXCHEQUER then said, time, end a different thing at another ? This power was to he felt thankful to his Right Hun. Friend's kind endeavours be granted to the Bank of England and not to country banks. to persuade the House to permit hint to Witte thus in the He had no intention to deny that the Bank was conducted by Committee what was the object and precise intention of his honourable men, but had there been nay occasion since 1(110 , in amendment. With respect to the entenitment, he could not 'which the Bank had not been always mint in the front of the but believe that there must be some misunderstanding t and bottle ? A great proportion ot' the public distress proceeded from . he confessed be thought hirneelf a little hardly treated in the the Bank-wit wait the Bank of England that gave an impulse to course which had been pursured by lion. Memitersl relative the country hanks, and 'Weems our duty, coneitlering the power to that amendment, i wii ch they had made a topic of discus. and influence of the Bank, to learn leasers from experience.— siert before they had heard it. When, cm a former nig ht, Ile heard nothing from the Right Hon. Gentlemen that night the .icon . Member for Coventry had broken out into a violent which could lead him to conclude that there was any ground inculpation of the conduct of his Majesty's Ministers for having for attaining the measure proposed by that Right lion. Gentle. in the case of the currency abandoned as he called it, the twins Man—n MUSLIM which, in hit opinion, was. aim abandonment doles which they had themselves laid down, he felt that his of the measure, which had been carried by so large anti Majesty's Ministers had been hardly dealt with, and it suits triumphant a majority. He thought a more effectual mane gelded to his mind that the Hon. Member had been guilty of a could not be devised for defeating the original measure, than similar error in the abandonment of his own principles reletive time proposition of the Right Hon. Gentleman ; and the cense ttilree trade (of which he was a warm advocate), with reference coterie° would be, that the Bunk, by establishing branch banks, AO the silk trade. Whether title departure were to be attributed Would inundate the country with one pound Bank notes, the to his own convictions or external pressure, to which he might existence of which was the principal evil complained of by feel U expedient to sacrifice a principle to prudence, he would every Member on both aides of the House. lie had heard much not atop to examine. If that Hon. Member brought on his of the honour and 'integrity of the Directors of the Bank, and lie motion on that subdect, and should succeed in making converts had no reason to d o ubt i t, but as he considered the exercise of of Ministers, whi 1 he believed he would not, no doubt the , the power fronted to them by this measure would put it i n the .lion. Member would not hesitate, though ,Ministers in so doing power of. tle Bank ofEngland to defeat the original measure, violated 4 principle, to laud them to the very skies for he should vote against it. their prudence and discretion. Ills present proposition was Alr. JOHN SAIITII anticipated great danger from the bill, german; misunderstood as to what it was intended to omen- if this clause was nut supported. When the Bank kid made plish and what it wax not intended to Ac complish. It was the most gigantic efliwts to assist the country in December last, not Intended to give. the Bank of England any power to they found many persons, the moment they got hold of their keep their notes in circulation after three years. During these notes, to turn round upon them, and say, we must have gold, three rum of limitation it was true that no notes of Couto. and if they had not powiessed the power at that period of issuing ter Bankers were to be allowed to pass into circulation ex. 11. nave, the consequences would have been most dreadful.— Dept such as were dated before the sth of February. His If panic should return, this clause not having passed, the present proposition was to extend the circulation of Bunk of Bank could not have the power of preventing the most horrible .England notes to such as should be dated up to the 10th of next convulsion. The Hon. and Learned Gentleman had got a most October. lie could not see how it .wits possible that any one erroneous idea that the Bank was anxious to issue the small could doubt that if this was intended us a blow to annihilate all notes ; the fact, however, was, that they were productive of the steal banks it Would be all aggrevation of commercial tlifli little or no profit, and ft great deal of , trouble mitt vexation.— ,culty. It bad been assumed that to annihilate bank paper in- The Bank had now a large stock of specie , which would rapid stanutneously, would be productive of great inconvenience, and 13 , increase. By October all danger would be passed. The Abet the safe way, therefore, would be to remedy the evil effects lion. lilember here eulogized the disinterestedness of the Bank .of our system in three years time by a measure slow but certain Directors. In 1816 they had given a bonus of 25 per cent. in its operation. Ile was aware what inconvenience might arise capital stock to their proprietors, without securing any advan. if all the Country Bank some were extinguished. The Bank of tages to themselves. They might every one have nude a large Ingland therefore had exercised a power which was not of it- fortune,—not one of them gained anything. sellgood, but which was desirable as ti prudent inemieure ; and Mr. PEAItSE begged to assure the House that he did not dim measure of the Bank in issuing the one' pound notes had, support that measure because the Bank of England was teet he believed, saved many and. helped them to weather the storm, corned ; he approved of It from principle, nor was that measure who but for it must have been overwhelmed by its fury.— ever sought for or suggested by the Bank. He also assured the Meer le—His proposition for extending the date of Bank of lion. and Learned Gentleman who had spoken before his Hon. .England paper was not a departure. He conceived the ex- Friend, that there was nothing to be feared from the anxiety of ronsime necessary to effect what wai t the gre a t obj ec t of hire'. the Bank to gin their small notes into circulation. The one .self andhis colleagues in office by a prudent deley. All who pound note returned too soon to compensate fur the trouble it had voted for the geseintion of last Monday were pledged In gave, and mi the slightest panic or alarm it proved the source oonsistency to vote • for this delay, though they might differ of serious inconvenience. Time Bank, he complained, bad met as to the extension of time. Those who imegined that it with reproaches from all sides ; it had been charged, among wee calculated to defeat the g re a t al l ied in view should recce. other things, with suddenly increasing and then its suddenly re jest the spirit in which the measure Waii brought forward. In training he issues ; but, in tact, the Bank had not the power to the nionth of Dec/tallier last it appeared necessary . to the Bank do this; the issue of Bank paper depended ma the dementia of to take the step which it had taken relative to an issue ofsmall nierchante, and was proportioned to them. Their principal notes to meet the exigencies he the currency. At that time issues of notes were always made in consequence of upplica. Government stipulated that it should only be a temporary tient to that measure of relief, and that the Bank should then avail itself' were not founded in fact. (Hear 1 .) of the suite of the exchanges which then happened to be in Mr. Secretary CANNING rose. He irnegined it would be time favour of this country to bring about as speedily as expected of him to give his opinion upon the present occasion, uoseible our return to a more suitable state of currency. If and he would therefore embrace the prevent opportunity of do le thought for a moment this amendment were calculated to ing so. Ile hod anticipated diff e rence ofopinio n not much defeat the object of the Bill, lie would ask, did th e y thi n k upon the question, and he still thought that if they perfectly late Should dare to show his face in that Molise and express understood one another, they would arrive at an unanimous himself this evening with a warmth which ill became him, per- conclusion. Fortunately it was not necessary to enter into any 'haps, after practising so biome rind seandaloosit deception on them ? thetteticel, dimension ; it was a practical question they heti to w e n ear i )—The delay or extension new intended to be {vented, d ecide, mut it hed i Properly been treated n a practical manner. was merely for the purpiwe of cobbling the Bank of England to The question was not whether an unrestricted latitude should supply ~ viti) notes t he Country Biotite, -which they would not he given to the Bank ; it wits not whether a liberty should be abo i runder roes r—'l& i 1 it • • • unisss theme !hanks were lu r ne. p ue , g to ut a kind to -defeat the principle of the Bill, but .require e'it 6d i undat'n the Mt 1 Wll. 'lt was absurd to talk of the Bank of le g u A ig p y ether a power should be entrusted to it calculated ' 'Om their paper —they public wi . would not part with it or throw to meet anti to obviate dangers with which the progress of wit out at the window w i t hout receiving value for it. So fur t h e Bull was actually threatened. It had been stated that no *ton Governmeet being desirous to lend huh' to any suc h p ee . reason bad been given why a propositiou which Ministers had jet:; At was entirely agllllifit the opinion over and over again ex.. resisted no longer ago than Imo Alontlay, should on the present prettied by Gevertunera. It was wild by the Unit. Member for 'timidity be taloptter by them. His answer to this was that the 'threncetoer hi i speeelmS some pert of which well highly credit. proposition how offered to the House wart not the satne, nor any aide to his good sense, that the Bank of England paper was no thing like it, with that submitted that day se'nnight by time `favourite, in the ektintry. The Country Bankers, i t was there. lion. Gentleman opposite. There was the word Bank, and the fore to be 'supposed, would wsnt the relief beihre they asked it, word issues, but in that consisted the whole resemblance. The motion of the Honourable Gentleman had been to leave nut of the original resolution the words " the Bank of England," the effect of which would have been to leave the Bank in possession of the power of issuing one and two-pound notes without any limitation or restriction whatever. The measure now is widely different in degree. It alters the original resolu tion no further than to retard its application to the Bank of Eng land till the 10th of OctobtrieneXt. He hail now said sufficient to repel the charge of inconsistency. lie would now establish the propriety of the measure on other grounds. It would he recol. lected that he had strenuously urged upon country baliK when the measure was originally introduced, that it 4 tempted any rapid and precipitate contraction in their issues, dangers might be produced by their conduct which were not in. herent in the measure itself. He had most anxiously expressed the wish of Government,that they should spread their preparation over as large a period of time as possible. Now what hail actually happened ? Reports from all parts of the coun try concurred in stating that the Bankers were yroceed ing to a very sudden and rapid contraction of their issues.— Now what would be the effect of this conduct, already gene. nil, should become universal ? If' the seven or eight hundred country Bankers of England should commence a sudden and simultaneous contraction of their paper ? This was a question which pressed upon the immediate and anxious consideration Of Government. if no remedy could be devised, there would be the greatest reason to apprehend the most violent convul. sign. There was obviously no other remedy than that now of fered to the House, unless gold had been on hand in a state of preparation ready to fill up all the channels of circula tion, and to supply the vacuum which the precipitancy of the bankers appeared likely to create. And without some adequate remedy, the country would have been exposed to the very same kind of calamity, only perhaps in a minor degree, as it expe rienced in December last. -rrhis was the exposition he had to give of the meaning of Government. Ile believed that all prac tical men would agree with him in the propriety of pursuing every great public object with as much tenderness to private in: terests, prej udices, and feelings, as was possible, without endan gering its final and complete success. It was in this spirit that Government were now proceeding to reform the currency. And now with respect to the Bank of England : he did not expect any great trading; Corporation to pursue the public interest to the exclusion or in forgetfulness of its own. Now in order to ob viate the apprehensions of those who imagined the Bank likely to cling to the power which the clause would give them, he would look to their past conduct. In 1819, immediately on the Bill being passed for the resumption of cash payments, they did 'begin gradually to withdraw their 1/. and 21. notes from circulation ; and long before the period when by the law as it then stood their circulation was to cease, they had withdrawn them altogether, and fully supplied their place with gold. It would not appear from this that the small notes were a favourite part of their circulation. It was a great confusion of ideas to suppose that the Bank being desirous to issue largely, and being desirous of' issuing one and two pound notes, were commutable propositions. It might well be that tlioir interest may lead them to issue the larger descrip tion of notes, and to refrain from issuing the other. So com pletely had the small notes of the Bank of England disappeared, that in December last, when applied to for an opinion as to the propriety of issuing them, he at first really believed them to be prohibited bylaw. He did not ask those who entertained a jealousy of the Bank to believe that it had refrained from exer cising the power it retained from any respect to the principle so generally maintained in that House; it was enough for him, as a practical man, to see that the small notes did not form A favourite part of their circulation. Then again, had they not made effort after effort, to force a gold circulation upon the country. Millions of sovereigns had been sent into the coun try, and always found their way back again to the Bank. Whenever they sent forth a flight of gold, it returned back to them, like the dove to the ark, finding that a wide deluge of notes still overspread the land. These three circumstances were surely enough to remove any jealousy upon the subject, the gradual extinction of their small notes completed, long be fore the period required by law ; then their abstaining from a renewed issue, when the law was altered ; and finally, their repeated efforts to difibse a gold currency throughout the country. In December, when the exigencies of the country compelled the Bank to think of resuming the issue of small notes, they were +twilling to adopt that course without the express sanction of Ministers. There was no eagerness on their part, neither was there any want of caution on time part of Mi nisters. lie held in his hand a paper, which contained, it' not the very words, at least the substance of the answer which Mini. stets had •given to their application. It said, that if for the purpose of meeting the temporary exigencies of the country they thought such a measure advisable, the Al inisters would not withhold their sanction, provided it was distinctly understood ' that the measure should be temporary, and provided also that the Bank should avail itself of the then favourable 'State of the exchanges to increase its stock of gold, in order to affbrd the means of widening hereafter the metallic bas of the currency. This paper had been written at that time, cer... tainly not with any anticipation that an occasion would arise for its production. It is in the same principles, and with the same views which they then expressed, that Govern ment now propose this measure. If a similar exigency should arise it would, without this clause, be put out of their power by law to adopt a similar (remedy.—.. The Honourable and Learned Gentleman would see that by this clause, instead of defeating the principle of the measure, they really took out of the way one of the chances of its defeat. Because if in two or three weeks, whilst that Bill was still in progress through Par liament. a crisis. should arise in any degree approaching to that which had passed, could any thing be supposed more likely to prove fatal to the measure. Ifin such a crisis the Bank should be found with only 5001. in small notes ready, an accident which without this permissive clause might easily occur, how would Ministers be taunted for their improvidence and want of fore. sight. Let it be some consolation to. the Hon. and Learned Gentleman to compare the state of the law as it will be left with this clause added to the Bill, with the state in which the law would have stood, if in consequence of any such crisis as he had supposed the Bill had been altogether lost. It was perhaps not too much to say that in that case all hopes of the restoration of the,corrency to a sound state would have been nearly extinguished. This at least was evident, that at the end of seven years, at which period the cessation of the paper cur• rency is now provided for by law, the difficulty would have greatly increased by the mere circumstance of the defeat of this Bill. There had been symptoms of a danger that time ex tinction of the small note currency would proceed so rapidly before an adequate 'windy of gold could be produced as to oc. cawion inconvenience. Ihe object of the claw was to provide for the abort interval, during which a vacuum might exits, be fore the influx of gold had been sufficient. It was to avert a danger, which, if incurred at all, would be most likely incur re d at the moment of the Bill going into operation.—(Cheers.) 111 r, TIERNEY said, without particularly following the Right Hen. Gentlethan who had just spoken, if' he were indeed . sure that by agreeing to this Bill, which allowed the small notes to circulate till 1829, be should really facilitate the re turn to cash payments, he would not object to the amendment; but it was the conviction of his own mind that in 1829 they should be circumstanced as they now were on the subject of paper circulation. He could not understand the conduct of those Gentlemen who opposed the principle of the Bill with out this amended clause, and who were prepared to support it with such alteration. lie should be glad to know, for in. stance, how the Honourable Member for Newton (Mr. H. Gurney) could sup port it ? How did it happen that his ob jection should be thine away with the moment his (Mr. G.'s) plan was adopted, for partially adopted it was? He should like to ask some of those Gentlemen whether it was because they again began to see the aspect of paper money 7—(Hear, hear I)—Was it because paper was beginning to be at a pre mium ? Was it because they beheld prices looking upwards ? Were these the reasons that they now hailed , with j oy, wh at they had before looked on with abhorrence? The Right lion. Gentleman (Mr. Canning) had intimated, what it was to be feared was but too true, that the determinations of the coon. try bankers had thrown impediments in the way of the Govern ment plans. The proceeding, perhaps, was natural. They load taken the word of their Commander : he had said " Mutiny !" and they replied " Mutiny we will," and mutiny they did.— And he was lorry to see the effect it had produced upon Govern ment. The country bankers had combined to stop the circula tion; its great and mole ground was to stop this measure. lie lamented that Government had wanted firmness to meet such combination, that they had not had the courage to face the dif ticulty had they displayed such courage only for one week, the country bankers would have struck and come in. —(Hear !)—A3 to the supposition that thoss country bankers would take the gold and keep it by them, or bury it as it were, he could noten tertain it for a mon-mem-41th. Canning observed it was held that gold would be required " instantly" to take the piece of the small notes.)—Why instantly ? it was said and understood that the notes would gradually be withdrawn and replaced by the gold. As to the Bank of England, he respected many of But the Members, but speaking them as a body, he 'une. quirocally d eclared that be suspected every step been encourag e d . , they took. bo m uc h did h e distractthem, that , hi s conscience , b e li eve d to the Bank were attrib uta bl e the evils of' which they had to complain, and whi c h h a d though it was sa id See how handsomely the Bank h as by the large issues of the Bank. behaved, in the c ourse of a few days they have increased their Issues to the extent of 8,000,0001." Did they forget that the Bank Directors were all merchants, and that they might have found th emse l ve s in a state of dan ger ? )How ever, one of his friends, though such was the fact, d had moved thank s to t h ose Directors for their cond act; an d Government, it seemed, partook in the enthusiasm. Such proceeding was like applying to the Royal Humane So ciety for the reward for having preserved a boy from drown ing ; when the boy, If he could speak to the party soli- citing the thanks & would Say—" Aye, but you threw me I in."—(Cheers and laughter.)—He had read the Corres• pondence and papers between the Government and the Bank, on the subject of the Restriction, &c.• accord ing to them, the Government was charged with having .been the cause of the continued suspension of cash pay.. ments—that, in fact, the Bank Jusd .been desirous of paying and bee ing bankrupts. All the blame had always be en k r thrown the Government. With respect to the gap tha t would take lace in the circ tion by the ad..,tion of the origi nal measura,N,was V ri lp dged that the .untrPliV n isi stripipioive to th4r se Nn not conti . ~ time t way impediments ; but as ex ected t ' ftilV 'it o , and therefore this amendment was proposed ; but he would say, only let them alone, and they will " knock under." If the - Government would only hold out, they would triumph. But how happened it, in 1822 , when the law allowed the small notes, and when they were out, that there was not such an alteration of prices, and when up got all the Country Gentlemen ? As to Government having at , any future period a small amount of one and two pound notes (500/. hurl been imagined), if the power were extended to October 10, the Bank would be enabled to get immense issues ready. He had no doubt that the one pound notes would throw out the pound sterling; and at such period he did not believe the gold would be so well circulated as now. Gold could now be kept out ; the, exchanges were favourable, as were our relations with other countries. But it was lin possible to say what might happen before three years elapsed. It was impossible to deny that all the steps they had adopted to restore the currency, every step had been fought by the banks, and they heti said that difficulties would accrue, and let the ParliaMent and the Government share the consequences. Still if be thought that at the end at' three yeats, there would no longer be any difficulties in the way of returning to unrestricted cash payments, he would agree to this measure ; but feeling assured that such was not likely to be the case, he was indisposed to break in, upon the wholesome measure of the Chancellor of the Ex chequer, and, therefore he should oppose the Amendment now proposed. He repeated his wish that the Ministers had only, had a little more firmness ; if but for ten dayS, so as to let the agitating fluctuations partially pass over ; and he doubted not that the Government would have triumphed, and carried this measure. He believed that the Ministers were anxious for the measure; he only lamented that they had not evinced more firmness; and he had been but anxious to discuss this subject calmly and dispassionately. He would not agree to the new proposition of the Chancellor. Mr. T. WILSON was of opinion that the circulation of the country was very much contracted. In Yorkshire such was the case to an alarming degree. It was natural to expect that the country banks would play their own game, and it was pro bable that, in the course of three months, they would draw back the circulation and embarrass the country. If it was proposed to with - draw the small note Circulation - altogether, it would not be so injurious as the consequences of its partial re moval. The country banks will now hoard up the gold and their . own notes, and the country will thus be left destitute of both. Mr. GRENFELL, in allusion to what had fallen from a Right lion. Gentleman (Mr. Tierney), wished to explain that when he proposed a vote of thanks to the Bank at a meeting of the proprietots, he did so in a limited manner. The vote did not include all the acts of the Bank. They were, however, entitled to some gratitude for their conduct during the panic, and on that opiniiin he acted. Mr. Secretary PEEbroso:—He felt inclined to give the Hon. Member for Knaresborough ( Mr. Tierney) all credit for the dispassionate manner in which he had delivered his opinion. But before he said any thing upon it, he would beg to answer a question which had been put by au Honourable Member who accused the Ministry of consenting to extend the power of the Bank, when they refused to listen to the proposition of the Honourable Member for 111 idhurst to postpone taking the subject into consideration for a Month to come. The propo sition here laid down war a gross sophism. Had they delayed to take it into consideration fora month, the evil would not have been confined to the delay, but it would lead to the una voidable inference that Government had changed its views, and that in the end it would not pursue the measure. That was the reason why that proposition was not acceded to. It had been said to turn upon a question of time: Another Honourable Member said that it was entirely a question of principle.— Many have opposed the motion on principle, but not upon the time. It was difficult to say which was in the right. The Right Hon. Gentleman (Mr. Tierney) had said, that there had been a mutiny among the bankers, and that Government ought to,oppose it with fitainess, anti not give way to it. There was no doubt that when a man owed allegiance to the Goiern. meat, nothing could ho so unwise as to concede any thing to him, if in a state of rebellion or mutiny. But the bankers were an independent body of men, judging and acting in their own private affiiirs just as they thought fit, and it was really too much to expect that Government should say, " We can take no step whilst you are in a state of rebellion." It would be the grossest perversion of power.—(Hear, hear ! and laughter.) It was very well to have firmness at proper times ; but in the. Government of a great country, it was the wiser course not to oppress the great interest of the nation. When a great nation was in circumstances of a novel nature, it was im possible to say, that they should not go to the right or the left, without deviation, whatever events might. happen. It was as ri diculous as ter the master of a vessel to undertake to steer through a new and intricate channel, without changing the position of his rudder. A man must be endued with more than human reason, who could say, that he would bring forward a measure perfect in all ita parts, and which would not require the least al teration. It' it be said that the Country Bankers were in estate of muting, and were pupating improvident measures, producing great local distress, he (Mr. Peel) should say, that the present measure was to relieve that distress.—(Hear I)—He only con sented to it upon the express understanding, that the Bank was to act upon it in the spirit with which it was proposed. It had been said, that in the year 1319 the Bank did not show a great inclination to withdraw its circulation. But it must be re membered that that circumstance could not be urged as a reason for its not giving it now, as the circumstances were different. The obligation was involved of paying in gold, which might not then have been exactly prepared for.— When the present Bill was brought forward, he (Mr. Peel) concurred with it; but it struck him, and several friends around him, that circumstances might wise which might make it desirable not to deprive the .Government by law of the exercise as the power to relieve. Out of the seven or eight hundred banks wh ich were established in England, some might occasion local difficulties, which it would be desirable the Bank should have the power of relieving. It was in that view that the amendment was particularly good. The conduct of the Bank- in having abstained since 1823 till Christmai last, from issuing any small notes, was a strong proof that the Bank would not wantonly abuse the powers confided to it ; and if the Bank did so abuse its power, it was not the hank alone which would be responsible, but the Government also ; and he (Mr. Peel) would not have consented to the measure, if he had not a firm conviction that it would facilitate the execution of its prin- ciple. It was upon these considerations that he concurred with this measure ; and he begged to assure the House that there lurked not in his mind the least idea whatever of the re. currence of the evils prophesied by Bon. Gentlemen who had preceded him. Mr. ELLICI3 defended himself from the imputation of in consistency. Ile did not know how Government was to be responsible as he had not heard of the appointment of Commis sioners. No gold would find its way into the country if the bill were to pass, every thing would be paid for by Bank of Eng land notes. if then this-was to be the case, country bank notes would be preferable, as they were less liable to forgery. This Bill would he a virtual repeal of the Bill of 1810, for, though he gave the Bank Directors credit for their recent con duct, he was apprehensive they could not resist the temptation afforded by the privilege of issuing. Mr. IRVING was in favour of the measure. The calls of " Question" which had been regular conclusions to the speeches of the last speakers, now became exceedioglylotrefand prevented us from hearing distinctly. Mr. BARING defended the consistency of his opinions. He at first, and still attributed the panic and misery to speculations, and the great nuisance of over-speculaticm. He agreed in the remedy proposed : but he thought that the three years specified would prove a nullity, for the very discussions on the subject were like sending_ the cry . of " mad dog" through the coun try; so great was the prejudice excited, that the people in the country would shower in the notes to the bankers, and the bankers would be obliged to draw in. The existing evils had been undoubted occasioned by the wild schemes and projects which were forwarded by the great abundance of money. He agreed on the principle of the remedy, but thought that the 11111 was anticipated in its contracting operation already. The effect of it will be this, that the country bankers will remove the so v reigns from circulation, whereas now it is their interest to keep the gold in the country. Sir JOHN NEWPORT was of opinion that the adoption of the amendment would frustrate the object of the Bill. • Lord FOLKSTONE augured from the conduct which had been exhibited by Ministers in that house, that they would be so firm and determined as to resist all external hostility to the measure. The House should, however, be cautious that they did not rush into difficulties from which they would find their inability to extricate themselves. Mr. MONCK said, he had heard it observed that if they went on calling in the notes they would create a deficiency of the circulating medium; to this he would reply—if they could not have gold, let them have silver. Ile had never known it to be asserted, though there was a scarcity of gold, that there t w th a a s t a n neither t g Y o o l t f l nor si lver si I v al e rs o. w as l t f o , t h e ow ha e d ve , r; th i , t ; s c h ou ou n i t d ry tu w rn as ou in t no very enviable condition. This might be the fast; but it Was an - awkward confession to make, and would not be likely' o contribute much towards a restoration of the country's lest ~ confidence. It had been said there was a mutiny amongst the bankers ; he believed there had been a mutiny amongst the holders of notes. At Manchester and other places they had come to the resolution of not taking the country bank note* , -- (Cries of " Question, question.") Mr. BROUGHAM. then rose. H hould no .ng trespass 4 4 the patience of _the Hon. Gentlem ' , Ile ''''' thought the earlier representtions of the ' ,ellor7 he 'ex cite ere. that he should h been • b •havk i Neils 1-44, 1 c tepeerence Itehtellesl Ifilla , te s, • te Ttreh feleedieposed tome oer lib impediment wh, er, thin ins It most essential to the country, crippled as it then was, t hat this step should be made ; and let it be recollected, thi s was first which had been made towards' the establishment, or ' tun' restoration, of a sound healthy currency. But the Chan cellor of the Exchequer seems to ,have changed his views to a certain extent, so far as might be ascertained from the Ws' ' sure before the House; and he (Mr. Brougham) could not, ' consistently with the opinion he hail then expressed, support the present measure. All seemed to agree in the belief, that a , metallic circulation would be productive of great benefit; but ; the quation now was a questiortuf time. The House, however, would be decidedly in the wrong to entertain the idea of Any postponement of the measures. The answer to those necesary • desirous of abstaining from present proceedings was, " If yea wait a year you will then .aseeadlv °W as you are now." The time given would not be used as it was suggested it might be—. the bankers would not during that period prepare themselves for the projected change. On the contrary. they would, instead of contracting their bank -note - issues, proceed with them to the end of the year, in the hope that some new circumstanced would • transpire, and give a new view of the subject, or induce a fur ther postponement in. their favour., It had been urged that the ' the bankers should be afforded a year; hut he now said, Do not give them a month; - -- - alittleninnthl If it was a question of expediency, the same principte which objected to the granting of a year would suggest that there should not be any time ceded at all. What was the nature of the other arguments used ? They contemplated a more convenient period for carry those measures into effect, and sought time that this period might be brought round. But the - step had been already made.—( Hear, hear I)—Circumstances had done it for them. The recent dis tresses of the times had effected that which furnished the onl y ar gument they could use in favour of delay. It was well known that the country banks had confined their issues ; one benefit, therefore, had at least resulted from the dreadful amount of suffering to which the country had been sub. jected. The clause before alluded to had enabled the Bank, by giving them time, to fill up the very void which the recent distresses had occasioned, by obliging the county banks' to confine their issues. There was one observation he weak! make as regarded the reputation of the country blloker s i ' they were known to be men of ,the highest respectability an m " any o ff ensive expressions, therefore used in re lation to the must fall powerless. It was said the Bank of England, to re• here the present distresses, which were partly attributo r tre the calling in of country bank notes, was to have the powe of_ filling up that void by the issue of one and two pound notes of its own. But he would ask Ministers what security there was that only this void would be filled up ? They go on stamping and signing and issuing notes without being subject to any discretion but their own, until the very void which offered the opportunity of now intrPo the measures before the House was filled up. ti's al ways been of opinion that paper and_ gold could not exi st together but within certain limits. He was con s idered haye said that a great deal of paper, in a healthy state , convertible into gold on -demand, was the preferable circu lating medium. What he really did say was that he thought the large notes convertible into gold, such as a 51., 101., or 2011 would circulate advantageously with the sovereigns; that the moment they introduced the one and two pound rotes, aw a i t . would . go the sovereign- piece. He understood the Bank_ oil. England was to have the power of establishing branch baek , He should say nothing on the oppression of this, or the lain!: tide of imposing certain restrictions on those who had certale. rights; hut it appeared to him au extraordinary power given W le inistere the Bunk, which nothing but necessity could justify. 'might should remember they had thus deprived those of privileges who never had offended, and bad given to a great rival power the wee of competing with them considerably to their disadvantag e • l ee ,'" nisters talked of decreasing the circulation ; but bythis sY''''r • the Bank of Englandnotes would get into all ossible chantleir —Poor men in the country did not go to get the p ir notes changeos perhaps because they did notknove lio wor where ; this wee one wet in which the evil would be effected. He trusted, if these heall . :jl or local banks were to be established for the issue of 1 "' the s e t y t th i he n em i g i n l c. 3 :res b iasi e eded lSS w i f l oaci e l d t y ditiyl h at e vh a ee r :t o h w e go a ot r ial ! d Dis t a nce a ffo r r those afford to fr frequently oq7gu who einn notes, that they would be made payable at the lacee whence •30 miles. Another objection which he had to these proceedin(r, hear 1)—To mention'the name was enough. lie recolieett six or seven years ago,. seeing 20 or 31) for trial when 6 " circuits, arid all for the same offence. Mr. HUSKISSON explained. He would ask, whetheref the small notes of the Bank of England were not stibstituteaht considerable dif fi culty would not entertained. The i ti gil Honourable Gentleman said - he had no wish that there shouts be a 11. note in circulation, but it was very di ffi cult to awes such a purpose, seeing the panic that had taken place two sha gme nt ago. The Bank might say no, we will not issue paper, Y" t ee g t1 vi . y ..4, 1 ii !'41 10 , 0,t0 . : take gold. In regard to the obseriation that had fallen fra e ln ee d lion. Member (Mr. flume) whether the branch WIZ; agents were to pay in gold, 'he (Mr.H.) would sal, c e l l a In or else they ought not to be established, for it could never niebe tended that there was to be a restriction in their favour.Tl,ll4Zte. 1 Honourable Gentleman said he would ask what was th e sta te th e small notes were payable on demand, the larger of the larger notes of the country bankers : why, that ichlis ivere payable only in London. (" No no," from the ° P"' l ,l the Benches.) — The Right Hon. Gentleman said he had h ea n r h it statement front the Hon. Member for Stafford, an d ,e t " -- f e niell might not be a general practice,. still if it existed nt eee to lie he knew it did, what a situation it was for the ,country for placed in in which these notes circulated. In-a eounthnoo instance, where large payments for wages took Placet ", 14 we small notes to be withdrawn, then the banker woula s a e' is cannot pay you in coin, there is a Si. note, but you must gel, , lue for it in London. One pound notes niight be annibilarartil country bankers, hut 51. notes would be made, and the pess i : u nte l r. of such circumstances rendered it the more necessary for that ference should such circumstances arise, and therefore it ar e d by there was the necessity of those establishments being lan d had Parliament and the Government. 'rite Bank of KV" a ils no desire to put out their one-pound notes into circulation LI it was clear the country banks ought not to put' them vile, they did, that Parliament would take cognizance of w eir . IPeeer. ceedings. Ilthe issue of small notes was necessity! , 4 „ .. 0 0 Or let Parliament have the power of preventing s recu r t e the that distress and difficulty which had been brought tank • people. The Bill before the House would go to effect ths an k not" tiou ject. The Hon. Member concluded by saying that the e P otahe . of England was the proper establishment to issue small a and therefore he should vote for the amendment. r oe The question was then loudly called for, and th e Cora divided. The numbers were— For the Amendment . . - la : e Against it . . . . . . 14 e Majority in favour of the Amendment -- -I° '' 041 The CHANCELLOR-of the EXCHEQUER wished a' of a clause to the Bill to the following effect—" That a peneltl' , 501. be imposed on any person re-issuing a promissory AO' ' 1 der 51. after February 5, 1826." pee, After a few observations from Mr. Maberly, Mr., f l a ts, Mr. Hudson Gurney, Mr. Alderman Heygate, Mr. ‘4 the clause was agreed to. 4 OP The House then resumed, and Mr. BnonDEN brag" nsi. co the Report, which was ordered to be taken into further ~ derution on Thursday next. no gt4 The second reading of the South American Bill eta' u • [toned till to-morrow. , tuol t hi Mr. WIGRAM gave notice that on WednesdaY e diaee should bring in a Bill for the Repletion of Juries in e", Adjourned at a Quarter past One o'clock. LIST OF THE MINORITY n o r of Who voted against the Clause proposed by the Chone c oot. the Exchequer, to allow the Bank of England to ion _at, pound and Two-pound Notes till the 10th of Ostaberj: Althorp, Viset. Johnson, Col. Bickford, lv d J. Abercromby,Hn.J. Knight, R. ,Russel l , l . A i° r %sr. Brougham, Henry Lamb, llon. G. Russell, Ir. Blake, Sr F. 31actionald, J. Tierney', l"Ar. Chamberlayne, W. Maberly, J. Whitman?, ~,,A s Davies, Col. Monek, J. B. Wood, Altlchi Elliee,.E. Newman, T. Htibhouse, J. C. Newport, Sir J. TELl• l v n 'ieft. Ingilby, Sir W. Nugent, Lord Folkestone', _ _ o est % tbaßtyota trheoooooo. of return to Parliament, Exchequer it Parliament authorised the Government t° Om for the relief of commercial distress in 1 79 , 31 o r 0 sum of only 2,202,200/. was issued ; that tea plications granted by the Commissionersanoul3o, to 235, and th a t the applications , made were e jo The Bishop of Duamtm, we regret t o eta Yong at present much indisp in the osed. This truly %, of and most excellent Prelate is i Uld n - his age. I I